Cano's original development program for Davenport included plans to drill up to 40 wells before beginning tertiary recovery analysis. The results from the first two wells indicate that such an extensive drill program is no longer necessary. The excellent data and logs obtained thus far have provided Cano with the necessary information to accelerate the oil recovery process. Cano is developing a comprehensive recovery plan to produce another 2 million to 4 million barrels of oil, in an effort to bring production up to 2,000 barrels per day in the Davenport field. This development also provides significant cost savings as Cano works to rejuvenate its Davenport field.
"We are pleased that the drilling of just two wells has made it possible for us to take this next step. In order to advance Davenport to the tertiary recovery stage and fully exploit the field, we needed enough data to design a chemical program - we have that now," said Jeff Johnson, Chairman and CEO of Cano Petroleum. "Based on standard industry timelines, I expect our analysis will be complete in Q1 2005 and that our tertiary recovery program will commence shortly thereafter."
Cano's Davenport Unit is a 2,178 acre property located in the mature and prolific Davenport Field in Lincoln County, Oklahoma. Magnolia Petroleum (the predecessor to Mobil Oil) began initial development of approximately 180 wells in 1924 and production to date stands at approximately 22 million barrels of oil. Original oil in place was estimated at about 70 million barrels, indicating that approximately 48 million barrels remain in the formation. Cano's current daily net production is approximately 390 barrels of oil equivalent, with about 50 barrels being produced from Davenport.
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